Are you readyfor the benefitchanges?

Welfare reform April 2013

A guide to benefitchanges in Doncaster

to benefit changesfrom April 2013

contentsTimeline page 3

Find out when all these changes are going to take place.

Under Occupation page 4The Government is reducing benefit for people who live in propertieslarger than their requirements.

Council Tax Benefit page 8How the changes to Council Tax Benefit will affect you.

Benefit Cap page 12The Government has set a new maximum amount of benefit thatworking age people can claim.

Universal Credit page 14Universal Credit is the Government’s way of making the benefit systemsimpler by bringing together a number of benefits into one payment.

Pension Credit Timetable page 17This timetable shows you when you can claim Pension Credit.

page 18

Changes to the Social Fund page 20How the Social Fund changes will affect you.

Where To Get More Advice back coverNeed answers? Find out who to ask.

Yourguide

Disability Benefits

Changes to disability benefits could affect you, find out more.

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3

Welfare

reform

April 2013

June 2013

October 2013

April 2014

October 2014

2016

timeline

• Housing Benefit non-dependant deductionsincreased.

• Housing Benefit size criterafor social housing begins.

• Local Housing Allowancerates frozen.

• No new claims for DisabilityLiving Allowance. All newclaims assessed for PersonalIndependence Payment.

• Introduction of UniversalCredit for new claimants whoare not working.

• Claimants receiving DisabilityLiving Allowance start tobe reassessed for eligibilityfor Personal IndependencePayment.

• Introduction of UniversalCredit for new claimantswho are working.

• Existing benefits claimantsstart to transfer ontoUniversal Credit.

• Housing Benefit is combinedwith Pension Credit.Housing costs start to bepaid by The Pension Servicefor pension age claimants.

• All Disability LivingAllowance reassessmentsare completed and eligibleclaimants to receive PersonalIndependence Payment.

2013 will see the biggest welfarerevolution in over 60 years as a resultof the Welfare Reform Act.

This guide provides details of the mainchanges, the dates they take effectand the impact the changes will haveon you.

The majority of these changes will onlyaffect people of working age, howeversome changes also apply to peopleof pension age. The headings on thepages of this guide indicate whichgroup is affected by the change.

Working age is classed as people whoare not yet able to claim PensionCredit. Anyone born after 5 October1951 will be classed as working agewhen the changes occur in April 2013.

The date at which you can claimPension Credit is shown on page 17.

New and existing claims for benefitfrom those who are already in receiptof Pension Credit will be unaffected.

From October 2013 either member ofa couple will be treated as workingage until both members are eligible toclaim Pension Credit.

Introduction

1. What is underoccupation?

nder occupationis where the

Government believesyou are living in aproperty that is biggerthan you need. Becausethere is a shortage offamily homes acrossthe country, theGovernment is goingto reduce the amountof Housing Benefit forpeople who are underoccupying. The aim is toencourage people withbigger homes to movesomewhere smaller, sothat we can provideaccommodation tofamilies needing largerhomes.

You are classed as underoccupying your home if you havemore bedrooms than you need.Examples of this could be:

• a single person or a coupleliving in a 2-bedroom property

• a couple with one child livingin a 3-bedroom property

2. When will it change?The Government is introducingsize criteria for working ageHousing Benefit claimants livingin the social rented sector from 1April 2013.

3. How will I be affected?Tenants living in social rentedsector properties larger thanthey need will see their HousingBenefit reduced. Social rentedsector means a council home or aHousing Association property.

4. How will the numberof bedrooms I need beworked out?

Under the new rules, yourHousing Benefit will go down ifyou are assessed as having oneor more spare bedrooms.

Welfare reform: under occupation

Under occupation

U

4

The new rules allow onebedroom each for:

• every adult couple• any other adult aged 16 or over• any two children of the same

sex aged under 16• any two children aged under 10• any other child (other than

a child whose main home iselsewhere)

• a carer, or team of carers whodo not live with you but provideyou or your partner withovernight care.

5. How will the reductionbe applied?

The deduction will be a fixedpercentage of the eligible rentfor Housing Benefit. HousingBenefit will be reduced by:

• 14% for properties with oneextra bedroom (around £10 perweek*), or

• 25% for two or more extrabedrooms (around £17 perweek*).

*These are average figures for DoncasterCouncil tenants and will vary according toindividual circumstances.

For people of working age

5

3 bed=

+

166

43 bed=

+

10 9 7

42 bed=

+136

3 bed=

+

136

Welfare reform: under occupation

6. What will my options beif I’m affected by the sizecritera?

If you are affected theGovernment suggests you do oneor more of the following things:

Move to a smaller property

You may decide that it wouldbe best to move to a smallerproperty that is better matchedto your requirements. This couldbe either in the social rentedsector or the private rentedsector. This may also result inlower bills as a smaller propertymay be cheaper to heat forexample.

You can move to a smallerproperty in the social rentedsector through a mutualexchange. A mutual exchange iswhen two or more secure counciland/or housing associationtenants in England, Wales,Northern Ireland and Scotlandhave a legal right to exchangetheir tenancies.

Each tenant must move into theirexchange partner’s property. Ifyou are interested in applyingfor a mutual exchange youwill need to register on theSt. Leger Homes website at www.doncasterhomechoice.co.uk. Ifyou would like more details youcan contact Doncaster HomeChoice on 01302 862628. Your

application will then be checkedby a St. Leger Homes staffmember to make sure you havedescribed your home accurately.

You will be informed when yourapplication has been checked andyou will then be able to log inand search for properties of yourchoice.

Increase your hours of workor take a job

If you have a job you mayconsider increasing your workinghours to make up the shortfallin rent. If you do not have a jobfinding one could help you paythe extra rent.

Make up the shortfall inrent from your other incomeor savings

St. Leger Homes also has awebsite dedicated to helpingpeople identify and claim all thebenefits they are entitled to andmake the most of their money:www.slhdmoneywise.co.uk

See the back page for agencieswhich can give you:

• advice on household budgeting

• help to check you are claimingall you are entitled to

• help to avoid taking highinterest short term loans

Ask non-dependants tocontribute

If you decide to stay in your

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current home and make up theshortfall yourself you may wishto ask any non-dependants livingwith you to contribute to therent.

Take in a lodger

You may wish to take in a lodgerto fill the extra room you have,although you should first checkthis is allowed by your landlord.Taking in a lodger would be apersonal decision and you shouldgive serious consideration to theconsequences of letting someonewho is not part of your family livein your home.

If any other occupants move intoyour house, you should tell theHousing Benefit section. If youreceive other state benefits, youmust also let the Department forWork and Pensions know. Otherpeople living in your home mayresult in changes to your benefitentitlement, and their behaviourmay also impact on your tenancy.

7. Can I find out if I wouldbe affected by this?

You can find out if you will beaffected by this by using theWelfare Reform Impact Calculatoron the SLHD Moneywise website.

The calculator will also checkif you are affected by otherchanges such as the Benefit Cap.

Visit www.slhdmoneywise.co.ukfor more information about thisand other benefit changes whichare coming up.

At the time of publication, theGovernment has said that it willlook again at the decision to notallow separate bedrooms due tomedical need. Please visit www.slhdmoneywise.co.uk for anyamendments to the legislation.If no changes are made the ruleswill remain the same.

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Welfare reform: Council Tax Benefit for people of working age

C

1. What is CouncilTax Benefit?

ouncil Tax Benefitis a means-testedbenefit that helps

people on a low incometo pay their Council Tax.

It is administered bylocal councils usingrules set nationally bythe Government.

No money is paid tothe person claiming,instead, their CouncilTax bill is reduced bythe amount of theirbenefit.

2. Who could get CouncilTax Benefit before April2013?

Anyone who was liable forCouncil Tax could apply.

In the case of couples, a jointclaim was made. The amount ofbenefit someone could receivewas based on the makeup oftheir household, the amount ofmoney they had coming in andtheir Council Tax charge.

3. What is changing?From April 2013, Council TaxBenefit will be abolished andevery council will have to replaceit with a new local scheme tobe known as Local Council TaxSupport.The Government is givingcouncils less money to pay fortheir new schemes. The cutwill be 10% of the currentexpenditure, which equals over£3 million for Doncaster, and willnot be increased if the numberof people claiming or the counciltax charge goes up.

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For people of working age

ax Benefit for people of working age

4. How will the new schemeaffect pensioners?

Pensioners will get supportunder the new local scheme,but will have separate rulesdesigned by the Government.The Government has said that nopensioners will lose out under thisscheme.

5. Who will these changesaffect?

All current working age peopleclaiming Council Tax Benefit willbe affected by these changes andmight see their benefit change.Around 17,500 working agepeople in Doncaster claim CouncilTax Benefit.

6.Who will be able to getthe new Local Council TaxSupport?

Anyone who currently receivesCouncil Tax Benefit will beassessed for the new LocalCouncil Tax Support. It is likelythat most people who qualifyfor Council Tax Benefit now willget some Council Tax Support.Anyone who has to pay Council

Tax may apply for Council TaxSupport and will be assessedunder the new rules.

7. How much will I have topay?

Doncaster Council’s Local CouncilTax Support scheme will usemost of the rules currently usedto work out Council Tax Benefit.However, they have had tochange some of the rules becauseof the cut in the Government’sfunding for the scheme. Thefollowing changes will apply tothe new scheme:

• The income taper will beincreased from 20% to 25%.(This applies to the rate atwhich support is withdrawnwhere someone has moreincome than they need tolive on based on Governmentprescribed amounts).

• Child Benefit for allchildren afterthe first childwill be treatedas income thatcould be usedto help payCouncil Tax.

9

(Child Benefit for all childrenwas not taken into account inthe Council Tax Benefit schemein place before April 2013).

• Maintenance received forchildren or for a former partnerwill be treated as income thatcould be used to help payCouncil Tax. (Some or all ofmaintenance received wasnot taken into account in theCouncil Tax Benefit scheme inplace before April 2013).

• The alternative maximumCouncil Tax Benefit scheme(known as ‘Second AdultRebate’) will end.

Anyone who received full CouncilTax Benefit before 1 April 2013because they were also receivingIncome Support, income-basedJobseeker’s Allowance or income-related Employment and SupportAllowance will not be affected bythese changes. These people willcontinue to receive full supportunder the new scheme.

Some working age people whoare not on these other benefits,and who qualify for CouncilTax Support, may have to paymore than they do now. Forexample, because of the changesto the way Child Benefit andMaintenance are treated, people

receiving Second Adult Rebatewill lose this benefit and have topay full Council Tax.

The Council will write to everyonewho currently receives CouncilTax Benefit to advise them ofany changes to the amount ofsupport they will receive.

8. Will I have to re-apply?If you currently receive CouncilTax Benefit you will not have tore-apply under the new scheme.You will automatically bereassessed using the new rules.Your award may be reviewedonce you have moved across tothe new benefit, for exampleif your circumstances change.

9. What else is DoncasterCouncil doing to helpprotect people affectedby this cut?

The Government is cutting theamount of money Doncasterresidents receive in Council TaxBenefit by around £3 million.

To help protect as much of thatmoney as possible for the mostvulnerable in the community,the Council is intending to endcertain discounts and exemptions

Welfare reform: Council Tax Benefit for people of working age10

on Council Tax for second homesand properties left empty.

This should raise approximately£2 million. The Council hasalso designed its Local CouncilTax Support scheme to meetthe criteria for claiming extraGovernment grant in the firstyear of the scheme.

This means Doncaster Councilwill be able to protect peopleaffected in the first year by usingthe extra grant towards the costof the scheme.

10. Are other discounts andexemptions affected?

Other Council Tax discounts andexemptions, such as the 25%single person’s discount and theexemption for people with severemental disabilities, have notchanged and were not part of theconsultation.

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1. What is the BenefitCap?

he Benefit Capwill ensure thatthe total amount

of welfare paymentsa family can receive isnot higher than theaverage take home payof working householdsafter tax and nationalinsurance contributionshave been deducted.The Benefit Cap will beset at £350 a week forsingle people who donot have children livingwith them, and £500for everyone else.

2.When is this changecoming in?

The Benefit Cap will begin infour London local authorityareas (Bromley, Croyden, Enfield,Haringey) in April 2013, with therest of the country being phasedin by September 2013.

3. Will there be anyexemptions from theBenefit Cap?

The Benefit Cap will not applywhere the person claimingbenefit, their partner, or anydependent children who livewith them, receive any of thefollowing benefits:

• Disability Living Allowance

• Personal IndependencePayment

• Attendance Allowance

• The support component ofEmployment and SupportAllowance

• Constant Attendance Allowance

• Industrial Injuries DisablementBenefit

• War Widows or War Widowerspension

Welfare reform: the Benefit Cap for people of working age

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12

For people of working age

• Working Tax Credit

People who have been inemployment for 52 weeks ormore when they claim benefitwill also be exempt from theBenefit Cap for up to 39 weeks.

For more information about howmany hours you need to work toqualify for Working Tax Credit,visit www.slhdmoneywise.co.uk.

4. How will I know if I amaffected?

The Department for Work andPensions and Doncaster Council’sHousing Benefit section havecontacted those people that areknown to be potentially affectedby the Benefit Cap.

However, there may be extrapeople affected since the contactwas made, for example peoplewho have claimed benefit sinceor whose circumstances havechanged.

The Department for Work andPensions will be contactingeveryone affected again, andDoncaster Council will also writeto everyone affected before theBenefit Cap is introduced.

5. How will the BenefitCap be applied?

When the Benefit Cap comesin, any amount of benefitreceived over £350 or £500 willbe taken off Housing Benefit.For example, if a single personwas receiving a total of £400 perweek in benefits, £60 of whichis Housing Benefit, they wouldbe above the Benefit Cap limitby £50. As a result £50 will betaken off their Housing Benefit,reducing it to £10 a week.

The Benefit Cap rules saythat the Council has to paya minimum of 50p a week inHousing Benefit.

This means that, in the aboveexample, if the person wasreceiving £50 Housing Benefit,their Housing Benefit would godown to 50p a week.

In the longer term however, theBenefit Cap will be applied toUniversal Credit (see informationlater in this guide). Oncethe Benefit Cap is applied toUniversal Credit, the full amountof any benefits received above£350 or £500 a week will betaken off Universal Credit.

eform: the Benefit Cap for people of working age 13

Welfare reform: Universal Credit for people of working age

1. What is UniversalCredit?

he currentmeans-tested

work replacementbenefits will bereplaced by a singlemonthly paymentcalled Universal Credit.

Universal Credit will bepaid monthly in arrears.Housing costs will beincluded in the creditrather than paid directto landlords. Tenantswill be responsiblefor paying their rentcharge themselveswhen they move ontoUniversal Credit.

2.When is this changecoming in?

Based on the latest Governmentinformation, Universal Creditwill start to replace the currentmain means-tested benefits fromOctober 2013.

At first, Universal Credit willonly replace income-basedJobseeker’s Allowance but, fromMay 2014, it will also replaceTax Credits and Income Support.Housing Benefit will also beincluded in Universal Credit fromOctober 2014.

3. Why is the Governmentbringing this in?

Universal Credit is intended tosimplify the benefits system bybringing together a numberof benefits into one monthlypayment.

Under the new system peoplewill not need to claim a rangeof different benefits as theirsituation changes, such asmoving in and out of work.

T

14

For people of working age

edit for people of working age

4. What benefits will beincluded ?

The following benefits will beincluded in Universal Credit:

• Income Support

• Income Based Jobseeker’sAllowance

• Income Related Employmentand Support Allowance

• Housing Benefit

• Working Tax Credit

• Child Tax Credit

5. What benefits will stillbe paid separately?

The following benefits willcontinue to be paid separatelyfrom Universal Credit:

• Attendance Allowance

• Bereavement Benefits

• Disability Living Allowance(and its replacement ‘PersonalIndependence Payment’ – seepage 18)

• Carer’s Allowance

• Contribution BasedEmployment and SupportAllowance

• Contribution Based Jobseeker’sAllowance

• Local Council Tax Support(currently called Council TaxBenefit)

• Industrial Injuries DisablementBenefit

• Maternity Allowance

• Pension Credit

• State Retirement Pension

• Statutory Adoption Pay

• Statutory Maternity Pay

• Statutory Sick Pay

• War Pensions

6. How will I be affected?Many benefits are currently paidfortnightly or weekly or straightto landlords. As Universal Creditwill be paid monthly in arrears,it will be very important forpeople to manage their moneyso there is enough to pay forfood andbills untilthe nextpaymentis due.

1515

Universal Credit will also includehousing costs (currently paid asHousing Benefit). Tenants willneed to manage their budgets inorder to pay rent, otherwise theymay risk losing their homes.

If you need help to plan yourbudget St. Leger Homes ofDoncaster offers free budgetingcourses for council tenants.Doncaster West DevelopmentTrust also holds ‘Money Matters’courses around the borough forall Doncaster residents.

7. What can I do toprepare?

Having a Credit Union account orbank account will be essential inorder to receive Universal Creditpayments. Having an accountwhich allows for direct debitsor electronic payments will alsohelp tenants manage essentialpayments such as rent, CouncilTax and other commitments.

Having access to the internet andbeing able to use a computerwill also be very important asmost people will be expectedto claim and manage UniversalCredit online. Help with onlineclaiming is expected to beavailable at local libraries andother places.

8. When is Universal Creditlikely to affect me?

Universal Credit is beingintroduced in stages over fouryears starting in April 2013. Thelatest Government informationreleased in December 2012 givesthe following timetable:

April 2013: Universal Credit willstart to be introduced for peopleliving in certain areas. This willonly be for single people whowould otherwise have madea new claim for income-basedJobseeker’s Allowance.

October 2013: Universal Creditwill start to be introducedfor more people who wouldotherwise have made anew claim for income-basedJobseeker’s Allowance includingpeople with children andcouples. This will gradually berolled out to everyone makinga new claim for Jobseeker’sAllowance by May 2014.

May 2014: Universal Credit willstart to be introduced for peoplewho would otherwise havemade a new claim for Tax Creditsor Income Support.

October 2014: Universal Creditwill start to be introduced forpeople who would otherwisehave made a new claim forEmployment and SupportAllowance or Housing Benefit.

16 Welfare reform: Universal Credit for people of working age

17

Pension Credit Age Timetable for Men and Women

Date of birth Pension Credit Age

eligibility date

Between And

06 September 1951 5 October 1951 06 March 2013

06 October 1951 5 November 1951 06 May 2013

06 November 1951 5 December 1951 06 July 2013

06 December 1951 5 January 1952 06 September 2013

06 January 1952 5 February 1952 06 November 2013

06 February 1952 5 March 1952 06 January 2014

06 March 1952 5 April 1952 06 March 2014

06 April 1952 5 May 1952 06 May 2014

06 May 1952 5 June 1952 06 July 2014

06 June 1952 5 July 1952 06 September 2014

06 July 1952 5 August 1952 06 November 2014

06 August 1952 5 September 1952 06 January 2015

06 September 1952 5 October 1952 06 March 2015

06 October 1952 5 November 1952 06 May 2015

06 November 1952 5 December 1952 06 July 2015

06 December 1952 5 January 1953 06 September 2015

06 January 1953 5 February 1953 06 November 2015

06 February 1953 5 March 1953 06 January 2016

06 March 1953 5 April 1953 06 March 2016

Pension CreditThis timetable shows you when you can claim Pension Credit

1818

Changes to disability benefits

Welfare reform: changes to disability benefits for people of working age

1. When is thischange coming in?

ome changesto disability

benefits have alreadyhappened, for example,Incapacity Benefithas been replacedby Employment andSupport Allowance. Allworking age IncapacityBenefit claimantswill have been sent aquestionnaire aboutEmployment andSupport Allowanceby 2014. Changesto Disability LivingAllowance for peopleliving in Doncaster startin June 2013.

2. What is happeningto Disability LivingAllowance?

Disability Living Allowancepaid to working age peopleis being replaced by PersonalIndependence Payment. This willprovide financial help towardssome of the extra costs arisingfrom ill-health or disability.

Personal Independence Paymentis based on how a person’scondition affects them, not thecondition they have.

Personal Independence Paymentis split between help towardscare needs and help towardsgetting around, just likeDisability Living Allowance.

There are no current plansto replace Disability LivingAllowance for children under 16and people over the age of 65.

3. How will peoplemove onto PersonalIndependence Payment?

Everyone of working agewho receives Disability LivingAllowance (including lifetimeawards) will be invited to apply

S

For people of working age

18

1919

disability benefits

eform: changes to disability benefits for people of working age

for Personal IndependencePayment. As partof the application process,applicants will be assessed by ahealth professional in order todetermine their needs.

If someone receiving DisabilityLiving Allowance does not applyfor Personal IndependencePayment, their Disability LivingAllowance will stop.

4.When will thisaffect me?

Disability LivingAllowance will start tobe replaced by PersonalIndependence Paymentin June 2013. Anyoneclaiming for the first timeafter June 2013 will be assessedfor Personal IndependencePayment.

People already receivingDisability Living Allowance inJune 2013 will be invited toapply for Personal IndependencePayment between 2013and 2018, howevera large number ofclaimants will not beginthe process until 2015.

People awarded PersonalIndependence Payment will beregularly reassessed to ensurethey are receiving the rightsupport.

For people of working age

1. What is theSocial Fund?

he Social Fundis a limited

pot of money that iscurrently managed bythe Department forWork and Pensions.The Social Fund is splitinto different budgetsincluding communitycare grants, crisis loans,funeral grants, and coldweather payments.The money is given topeople on a low incometo help them pay foremergencies such asfuneral costs, providingfor a new baby, or oneoff payments for itemslike washing machinesor furniture.

2.When is this changecoming in?

Changes to the Social Fund arecoming in from 1 April 2013.

3. What ‘s changing?The Government is planning tostop parts of the Social Fund andlocal authorities will be askedto provide their own schemes tohelp people in crisis situations.

Budgeting loans will continue tobe managed by the Departmentfor Work and Pensions untilUniversal Credit is in place.

As people move onto UniversalCredit, they will be able to accessadvance payments while theywait for the benefit to be paid.These will replace budgetingloans.

4. What scheme willDoncaster Council have?

From 1 April 2013 DoncasterCouncil will establish a LocalAssistance Scheme for thoseresidents who are unable to

Welfare reform: changes to the social fund for people of working age and pension age

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Changes to the SocialFor people of working age and pension age

eform: changes to the social fund for people of working age and pension age

meet their immediate short termneeds.

In the majority of cases paymentof awards will be made onprepayment cards. In exceptionalcircumstances payment may bemade in cash for items such asbeds, bedding, cookers, fridgesetc.

Awards of assistance may bemade to residents who havesuffered major emergencyor disaster, or are moving tosupported accommodation/independent living.

More information will be madeavailable as soon as the schemehas been finalised.

Fund

21

Action planDate Task Done

22

what you need to do next.

UsefulcontactsAdvice on Benefit Changes

Doncaster CouncilHousing Benefit Section01302 735336

St. Leger HomesFinancial Inclusion Team01302 736355

Help With Budgeting

St. Leger Homes CommunityEngagement Team01302 862983

Doncaster West Development Trust01709 866466

DIAL Doncaster01302 327800

Low Cost Finance

South Yorkshire Credit Union0303 0300 010

MoneyLine01302 337606

Free Debt Advice

StepChange (formerly CCCS)0800 138 1111

National Debt Helpline0808 808 4000

SYCIL South YorkshireCentre for Inclusive Living01302 892949

Help With Employment

Interserve 0800 048 2770

Housing

Housing Options01302 862043Doncaster HomeChoice01302 862628M2501302 361777

Useful Websites

www.slhdmoneywise.co.uk

www.doncaster.gov.uk

www.gov.uk

www.adviceguide.org.uk

www.dwdt.org.uk

www.stepchange.org

www.nationaldebtline.co.uk

www.successdoncaster.co.uk

www.doncasterhomechoice.co.uk

Business Doncaster01302 735555

General Advice

Citizens AdviceDoncaster 01302 735225Mexborough 01709 572400North East Doncaster 08444 994137

Green Gables Project01709 599092

Available in other formats suchas large print, Braille or audio tape

on request